Higher tax bracket? Surely not!

SupermumTGF

Good morning lovelies
My recent pay packet which I have been looking forward to for months has finally been paid. I earn somewhere around £29k per an and this month I received a bonus of £1000.

I have a pension at 6.5% and pay back student loans each month.

My recent pay totaled to £3382.50 and my net pay was £2233.48.

I paid £286.36 towards NI. £177 student loans. £465.80 tax and £219.87.

Can someone determine from these calculations have I squeezed into the higher tax bracket?

My average pay is around £1700 so I guessed with a 1000 bonus I would have £2500 in my hand.

Help plssss....

noh

No you didn't pay higher rate tax.
Put your figures in here http://www.listentotaxman.com/index.php and see the results.
At a guess you paid, on the extra £1000, compared to a normal month.
£87 more student loan repayment
£200 more tax
£120 more NI
£65 more pension contribution.
a total of £472 deductions

Giving you £528 extra in your take home pay.

Therefore your £2233 seems about right.

getmore4less

SupermumTGF wrote: »

My average pay is around £1700 so I guessed with a 1000 bonus I would have £2500 in my hand.

Help plssss....

You expected only £200(20%) to be deducted as above there are other deductions.


You would need £1000+ bonus every month to get to 40% tax.

SupermumTGF

Thanks noh, I think that's about right!

Just envisaged a heavier packet!

I've read the higher salary (40% tax) is from £31,866.
Is that correct?

dzug1

Yes and no. Using that figure ignores tax allowances so is misleading. You can actually earn well in excess of £40000 before becoming a higher rate tax payer

p00hsticks

SupermumTGF wrote: »

Thanks noh, I think that's about right!

Just envisaged a heavier packet!

I've read the higher salary (40% tax) is from £31,866.
Is that correct?

You need to add your personal allowance to that figure.


So, assuming you have the default allowance of £10,000


You'll pay £0 income tax on the first £10,000 in the year,
20% on the next £31,865 earned (so up to £41,865) and 40% over that up to the 45% band at £150k

SupermumTGF

Thank you for the replies, that has helped to clarify!
However my pay slips clearly state deductions have been taken for income tax in each month. It doesn't discriminate whether I go over the £10k personal allowance. For example from April-now.

zygurat789

SupermumTGF wrote: »

Thank you for the replies, that has helped to clarify!
However my pay slips clearly state deductions have been taken for income tax in each month. It doesn't discriminate whether I go over the £10k personal allowance. For example from April-now.

This is Pay As You Earn so you only get £833 personal allowance each month

jem16

SupermumTGF wrote: »

Thank you for the replies, that has helped to clarify!
However my pay slips clearly state deductions have been taken for income tax in each month. It doesn't discriminate whether I go over the £10k personal allowance. For example from April-now.

Tax in the UK isn't taken like that. You don't pay nothing in tax until you hit your personal allowance and then suddenly start paying tax.

Basically each month you receive 1/12th of your tax free allowance, 1/12th of the basic rate band and so on. That way your wage stays roughly the same throughout the year.

SupermumTGF

That's why I was slightly confused. Possibly from the way I read it. I always thought it was done the way you just described.
Thanks guys, I got it now!